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The Benefits of Manufacturers Going eCommerce: Why It's Time to Move Online

As eCommerce continues to grow, more and more manufacturers are exploring the benefits of selling their products online. Whether it's direct-to-consumer (D2C) or business-to-business (B2B), eCommerce can offer many advantages for manufacturers. In this blog post, we'll explore some of the benefits of manufacturers going eCommerce.

1. Increased Reach and Visibility

By selling their products online, manufacturers can reach a much wider audience than they would be able to through traditional sales channels. eCommerce allows manufacturers to sell their products to customers all over the world, regardless of their location. This increased reach and visibility can help manufacturers to grow their customer base and increase sales.

2. Greater Control Over Sales and Distribution

When manufacturers sell their products through traditional sales channels, they often have to rely on distributors and retailers to sell their products. This can lead to a loss of control over pricing, marketing, and branding. By selling their products online, manufacturers can have greater control over these aspects of their business. They can set their own prices, market their products directly to consumers, and control their brand image.

3. Direct Customer Feedback

When manufacturers sell their products online, they can receive direct feedback from customers. This feedback can be used to improve products, address customer concerns, and develop new products that meet customer needs. This direct customer feedback can be invaluable for manufacturers looking to improve their products and grow their business.

4. Increased Margins

eCommerce can help manufacturers to reduce costs. By selling their products online, the gross profit margins can increase from as little as 20% to as much as 65% or more. We’ve seen many examples of this. This additional margin provides much more comfort, particularly in today's economic climate.

5. Better Cashflow

Manufacturers and wholesalers may be used to offering their retail customers credit terms of 30-180 days, sometimes longer depending on the retailer. If done right, eCommerce can result in regular weekly payouts reducing the cash cycle down to just days! This additional cash together with increased margin can help the company grow much faster than it otherwise could and often without outside assistance.

6. Increased Efficiency

Selling products online can also increase efficiency for manufacturers. eCommerce platforms can automate many aspects of the sales process, such as inventory management, order processing, and shipping. This can help manufacturers to save time and reduce errors in their sales and distribution processes.

7. Flexibility

Finally, eCommerce can offer manufacturers greater flexibility in how they sell their products. They can choose to sell their products through their own website, marketplaces, or a combination of both. They can also choose to sell their products D2C or B2B, depending on their business goals and customer needs. This flexibility can help manufacturers to adapt to changing market conditions and grow their business over time.

While there are certainly benefits to manufacturers selling their products online, there are also some challenges they have to overcome when transitioning to eCommerce.

One of the biggest challenges is the need to adapt their traditional business models to fit the online landscape. This may require investment in new technology, website design, and logistics infrastructure, which can be costly and time-consuming if not done correctly.

Another challenge is the potential for increased competition. By selling online, manufacturers may be exposed to a larger pool of competitors, many of whom may have a strong online presence and established customer base. This means that manufacturers need to develop effective strategies for standing out from the competition, such as offering unique products or services or providing exceptional customer service.

Manufacturers also need to be aware of the unique challenges of selling online, such as managing customer reviews and feedback, dealing with returns and refunds, and maintaining a strong online reputation. Additionally, they need to be prepared to manage the logistics of shipping and delivery, including handling international orders and dealing with customs regulations.

Finally, manufacturers need to be mindful of the need to balance their D2C and B2B sales channels effectively. While selling directly to consumers can be a lucrative revenue stream, manufacturers also need to maintain strong relationships with their wholesale and retail partners and consider various marketplaces and sales channels. This means managing inventory levels, pricing, and promotions carefully to avoid alienating these important business partners.

Despite these challenges, manufacturers who successfully navigate the transition to eCommerce can reap significant rewards, including increased revenue, a broader customer base, and improved customer engagement and loyalty. By investing in the right technology and infrastructure, developing effective marketing strategies, and prioritising customer service and support, manufacturers can establish a strong online presence and thrive in the rapidly evolving eCommerce landscape.

eCommerce offers many benefits for manufacturers looking to sell their products online. Increased reach and visibility, greater control over sales and distribution, direct customer feedback, reduced costs, increased efficiency, and flexibility are just a few of the advantages of going eCommerce.

If you're a manufacturer considering selling your products online, now is the time to explore the many benefits of eCommerce.

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